TAXI MAG NEW ZEALAND TAXI FEDERATION MAGAZINE
C O N TA C T U S LEVEL 3 93 BOULCOTT STREET PO BOX 1778 WELLINGTON EXECUTIVE DIRECTOR: ROGER HEALE R O G E R . H E A L E @ TA X I F E D . C O . N Z DDI: 04 499 0611 / MOB: 021400719 ACCOUNTS: DEIRDRE DOYLE A C C O U N T S @ TA X I F E D . C O . N Z W W W. TA X I F E D . C O . N Z
INDEX I WELCOME
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I CARRYING ALCOHOL INTO ALCOHOL FREE ZONES COULD RESULT IN FINES FOR DRIVERS MITIGATE YOUR RISK!!!
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I GRAFTON BRIDGE TO BE USED BY TAXIS
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I PETER COMBES RETIRES FROM NELSON CITY TAXIS AFTER 43 YEARS IN THE INDUSTRY
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I IS TAX TAKING UP TOO MUCH OF YOUR TIME?
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I PRESIDENT PROFILE
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I BLUE STAR TAXIS (CHRISTCHURCH) REOPENS OFFICE
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I QUESTIONS & ANSWERS
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NZTF II NEW ZEALAND TAXI FEDERATION
WELCOME
H
appy New Year to you all and I hope you have enjoyed a welcome break over this gorgeous summer. For those of you interested, 2015 in the Chinese zodiac is the year of the Ram and “a year to use mental abilities over brute force. For those who wish to be aggressive, expect to be out-maneuvered by strategy and common sense.� It would certainly seem to be the case in point with a number of Taxi issues coming to a head this year. If we are to navigate the waters positively then we need to be ahead of the game and be seen to be ahead of the game in every way. It will also pay to be working hand in hand with authorities and be known to do so rather than butting heads. This issue of the TaxiMag deals with some of the more immediate items on the agenda and we strongly advise you to read and understand why we are actively supporting the authorities and not just trying to add more compliance to yourselves. Cleaning up the industry: All of us are affected negatively by rogue taxi operators, moonlighters, non-tax payers and people paying lip-service to compliance. The NZTA, in conjunction with the Police and IRD, are starting to crack down on all aspects of the Private Hire and Taxi Industry. Whilst their focus is not especially on Federation Members, it could easily turn that way if random checks of our drivers highlight issues. Of particular interest are Log Books and Driver contracts. As most of you are on MTData or SmartMove dispatch systems it is easy to compare Log
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MAGAZINE II 2015
Books with dispatched work. If you are unsure how to fill in your Log Book correctly, please ask your ATO representative. Similarly, it is extremely important if you have drivers working your cars to ensure your driver contracts are in order. The IRD believe that some drivers, especially secondary drivers, are not paying the GST collected on their fares. If your driver contracts are not correct, YOU may be liable for any unpaid GST and/or a fine if the IRD are proved to be correct. Auckland Co-Op has been kind enough to donate their driver contracts which we have amended for general use. These documents will shortly be available on our website at www.taxifed.co.nz . Additionally, you should check with your ATO first as it may already have suitable documentation available. Every ATO is also going to be subjected to an audit this year. The NZTA is going to pay a surprise visit to ensure things are in order. On the back of this visit the audit may take half a day or 3-days depending how the visit went. We are all keen for the NZTA to spend as less time as possible in our offices and as much as possible in the offices of those companies that really require the help. As a result, you may find some tightening up from your ATO to ensure that the audit runs as smoothly as possible. It is definitely worth aiding in this if called upon, as your company image in the eyes of the authorities is just as important as that of yourself and your vehicle.
NEW WEBSITE
We are happy to announce the launch of our updated website. We believe it is a fresh, modern look that brings the Federation in to line with what is expected by the public these days. Additionally, you can; Order goods on line (you will need to register first) Download the magazine and useful documentation for free Blog: Over time we expect to build a repository of information and links to stories that will educate both yourselves and our customers about what’s moving the industry both locally and abroad.
INDUSTRY REVIEW:
The long awaited review of the legislation surrounding Taxis and Private Hire has been announced and more information can be found here http://www.transport. govt.nz/land/small-passenger-services-review/ The Federation has formed a sub-committee made up of past and present members plus industry experts to ensure that our voice is fully represented to the best effect. At the end of the day, an even playing field is what is required to ensure the quality and consistency of service is maintained for both the customer and the driver.
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CARRYING ALCOHOL INTO ALCOHOL FREE ZONES COULD RESULT IN FINES FOR DRIVERS MITIGATE YOUR RISK!! 6
MAGAZINE II 2015
T
he Auckland council has put in place a number of permanent and temporary alcohol bans throughout the Auckland area. This number will only increase during 2015 with the onset of the ICC World Cup Cricket, Fifa Sub20 and other planned events. Objective: Police are determined that people coming to the party should only consume on site and not preload. This is particularly relevant to drinking in taxis. Thus anybody found with opened/finished alcohol when exiting a vehicle or unable to give a good reason why they are transporting alcohol within an alcohol ban area may be fined heavily. Policing: Drivers who do not take steps to protect themselves may also be fined as they can be considered a party to the crime i.e. the act of transporting alcohol to be consumed into a banned area is party to the crime even though the driver is not drinking. If the Police believe you are party to the crime, you can be fined or have your vehicle seized http://www.aucklandcouncil.govt.nz/EN/ licencesregulations/alcohol/drinkresponsibly/Pages/ alcoholbans.aspx#current
If an alcohol store (either bottle shop or bar) is carrying out its normal operations (e.g. sales or stock deliveries). In both circumstances the container must be sealed and the alcohol must be promptly removed from the alcohol ban area
P R O T E C T YO U R S E LV E S : Your ATO has been provided with stickers that should be placed inside the car (front and back) that advise customers that it is illegal to carry alcohol in the vehicle. If you have these stickers you can argue that you have advised the client and are therefore not liable to the crime. For those people who are carrying closed alcohol to/from home, the supermarket, to friends etc. We suggest that you put the bottles in the boot of the car so as to ensure there is no confusion in the event that you are stopped.
EXCEPTIONS: There are few exceptions and these apply to alcohol containers that remain unopened in the alcohol ban area: If the alcohol is legally purchased, then transported through the alcohol ban area (e.g. for consumption at home or at a friend or relative’s residence who lives either in or next to the alcohol ban area). 7
NZTF II NEW ZEALAND TAXI FEDERATION
GRAFTON BRIDGE TO BE USED BY TAXIS The Federation is pleased to advise that Taxis will soon be able to cross Grafton Bridge in Auckland, cutting distances dramatically to and from the Hospital. This is a big win for the Taxi industry and we would like to thank Bhullar Singh and Jacob Patel for their continued support in finishing off the work started by Tim Reddish and in particular, Ian Graham. It also comes on the back on a new, open approach between Auckland Transport and the Taxi Industry. Whilst the Federation is leading this relationship building, it would like to express its thanks to the Hon. Nikki Kaye MP for kick starting the talks. The conditions surrounding the use of the bridge will be released shortly and there are two important factors to consider: Cyclists are powerful friends: The cyclist lobby holds a lot of sway when it comes to transport policy and public opinion. Many of them are highly supportive of taxis, believing they should be used more often to reduce congestion and praise our green eco-footprint. However, whilst they recognise that there has been no serious 8
incident between a cyclist and taxi for a long time, they are obviously concerned about road sharing. Whilst we do not envision passing to occur at all on Grafton Bridge, opposite is a guideline for all drivers to study for when overtaking a cyclist. However, the thing that upsets most cyclists is suddenly finding a car right behind them. Given that most of our cars will be running silently at the speeds we are talking about, it is even more important to keep a car’s length behind cyclists at all times. Opportunity to prove ourselves for the future: Auckland Transport are using Grafton Bridge as a trial, not only to help our passengers but because it is also a small, highly controlled area that can be enforced. There is a desire to help taxis improve their productivity throughout Auckland with future potential trials of bus lanes, expressways, priority ranks, priority lanes to the airport and other ideas. However, it is up to the industry to prove that it can operate in these trials as expected. Operators whose drivers do not act responsibly will not be included in future schemes.
MAGAZINE II 2015
E X P E C T T H E S C H E M E T O S TA R T E A R LY M AY
Getting home safely! Give them 1.5 metres
The 4 second rule
4 sec
1m
1.5m
To get home safely we need to share our roads with care. Go to can.org.nz/ruw to find out how to drive and ride with others in mind.
3 sec
2 sec
1 sec
Stay in sight Don’t weave
Vehicles CANNOT see cyclists
Vehicles CAN see cyclists
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NZTF II NEW ZEALAND TAXI FEDERATION
PETER COMBES RETIRES FROM NELSON CITY TAXIS AFTER 43 YEARS IN THE INDUSTRY I
n 1971, Peter Combes purchased a Holden and a share in Nelson City Taxis for $3,300 after being encouraged to do so by a friend. The friend soon left and now, 43-years later, so has Peter. We thought it would be fun to catch up with someone who’s driven a taxi for more years than many of us have lived and to get his perspective on the industry. Interestingly, and it is the same for most people who’ve been in the industry for a long time, the first thing that strike you about Peter are his looks. A fisherman might be described as having a weather beaten face and maybe there is a need for a similar term for Taxi drivers. It’s a face that combines a pragmatic view on life with a generous nature, that’s seen it all. “The panorama was different in 1971. There were no meters and fares were dictated by a mileage card. One of the most frequent routes was 16km to out of town and cost $2.60. On an average day I’d take between $18 and $20. Whilst on a Friday or Saturday it could be double.” The low fares are obviously a reflection of the era but also typical of the pre-deregulation market, something that Peter bemoans. “There are too many taxis now.
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Whilst we didn’t earn a lot of money in those days we were never sitting around. Mind you, I suppose you can’t please everyone. People complained that there were never cars available, now it’s about expensive fares – too expensive for some. The number of times I’ve taken people to Richmond and charged them $40 only for them to comment on the amount of money I must make. There was one guy that even bought a share on the back of that fare. I told him not to but he didn’t seem able to understand that I’d been sitting doing nothing for 2 hours before he came along. He didn’t last long in the industry.” “But it wasn’t all bad. There was very little infrastructure back then. Once a boat came in and there were no flights due to the fog. These guys needed to get from Nelson to Lyttelton in Christchurch and wanted to make it into a giant pub crawl. I told them that I couldn’t drink so they offered to pay me extra to wait. We left Nelson at 6am and eventually made it to their boat in Lyttelton by 8pm. They didn’t care about the cost because it was all paid for by Kiwi Rail. But as I arrived, a guy yells from the boat “Is that a Nelson taxi?” So I was paid to go all the way back to Nelson again.”
MAGAZINE II 2015 Whilst the industry may have changed over the years, it doesn’t sound as if the people have. “You get all types. I’ve been driving the same people for over 20-years but there’s always a surprise in store. I took a drunk, islander home and he fell asleep. I gave his shoulder a nudge and he smacked me in the head without even waking up. I went round to the Police and it took 3 of them to get him out the car.” “It always pays to have a good relationship with the local police. They know you’re doing a service and helping them get people home. Once I was accused of sexual harassment by a girl if I didn’t take her home for free. After 20-years of taxiing people the Police were pretty happy to go round to the girl’s house and make her come to the office with an apology and the money.” Once I was even robbed by a guy in a wheelchair. He swiped my money whilst I was getting his chair out the boot! Because it was a “he said, she said” type of argument the Police were not able to enter the man’s house unless invited. You can imagine that he wasn’t having any of it so they got themselves invited in by his flatmate instead and found my money under the bed!” “But one time that really sticks out in my mind was one night, after hours with the typical “I ain’t got no money but I’ll pay you on arrival.” Anyway, I take this guy home and he says to me “Just wait here and I’ll get your money – I’ll even leave these shoes as a guarantee.” So I’m just rummaging around my car when I see this white shirt disappear over the fence and I know I’ve been hit with a runner. I get on the radio and tell the operator and she suggests I go to the Police and get the dogs. An hour later and the Police dogs are on the scene. They’re not interested in this guy’s shoes they just want to know where he got out of the car and before you know it, they’re off. Half an hour later I get a call from the Operator to meet the duo down the road. They’ve lost the scent and want to start again. However, this time the Policeman tells me to “keep the meter running.” Half an hour later and I get another call from the Operator asking me if I can go to an address, where I see the Officer, his dog and a woman. It turns out that they’d tracked the man to his house and he was sleeping, so the misses had come out to pay. The original fare was just $7 but after all the waiting it was
$40. Unfortunately the woman only had $30 on her so the Policeman made her go back and get some more. When she came back with $40 the meter said $45 so the Policeman was about to make her go and get some more when he asked me if that was enough. I was delighted and thanked the Officer who was going to go inside and have a little chat with the runner. Anyway, I drove off to the nearest petrol station and whilst filling up a Police car pulls up with my runner and the dog in the back. “I thought you were just going to have a chat with the guy?” “Yeah I was, but then he took a swing at me so I set the dog on him and he’s going to spend a night in the cell.” Result – he had to pay a further $75 and do 3 hours community work.” We continue to talk about Peter’s experiences and you can tell that he’s enjoyed his life. His claim to fame would be the purchase of a Datsun 180B – the first 4-seater in Nelson City Taxis and this in turn leads to a conversation as to why passengers tend to sit in the front of cars in New Zealand. But the time is up. He’s happy to have left the business and can now return to wearing shorts, T-shirts and Jandels whilst catching snapper from his boat. As I leave, we shake hands and his eyes light up. “I’ve just remembered this one time” he starts, before shaking his head, smiling and finishes “but I’d better not mention that!” 11
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MAGAZINE II 2015
IS TAX TAKING UP TOO MUCH OF YOUR TIME? At a time when you can use your cell phone to order a movie or buy a plane ticket the Government thinks that Inland Revenue can do much more to make your tax simpler. Businesses say it takes too much time to do their tax and takes them away from doing their work. And it costs too much to run. As taxpayers you pay for that too. Our tax system is recognised as one of the best in the world, but the way we manage it needs to improve. Over the next couple of years, the Government will consult on ideas to understand your views before we settle on what to do. These changes will affect all New Zealand businesses and individuals. Right now we are giving an overall picture of how tax could work in the future, and more detail on how we can use digital technologies to simplify tax. What could this mean for you? As an example, in the future the Government proposes that accounting software would be able to exchange information directly with Inland Revenue, so that:
There are also some ideas around helping small businesses get their tax right from the start. How could exchanging information directly with Inland Revenue benefit taxi owners and drivers? I think that these ideas would mean you can spend less time filling out forms, and more time on your business, but we need your feedback. It’s time to make the tax system that is easy for you.
JOIN THE DISCUSSION Go to makingtaxsimpler.ird.govt.nz for more ideas, see what others are saying and give your views. Discussion on Better digital services closes on 15 May 2015. Discussion on Making tax simpler, a Government Green Paper closes on 29 May 2015.
More accurate PAYE, GST and related information could be provided to Inland Revenue automatically – with less time needed to fill out forms
For paper copies email policy.webmaster@ird.govt.nz (subject line: Making tax simpler documents) or phone 0800 587 243.
Provisional tax could be managed more like PAYE and calculated as you earn your income.
Hon Todd McClay Minister of Revenue 13
NZTF II NEW ZEALAND TAXI FEDERATION
PRESIDENT PROFILE Wa r r e n Q u i r ke i s i n h i s 1 8 t h y e a r i n ta x i s .
A
former motor mechanic and service foreman, he began as a night driver in 1998 and got his own taxi two years later. His family heritage with the industry goes back to his father Neville who served 35 years. One of Warren’s childhood memories is of Wellington’s Wahine Day, April 10, 1968. The fierce storm that claimed more than fifty lives in the harbour and a couple more on land, made driving impossible so Neville headed home mid-afternoon for a number of safety reasons, none the least of which was the fact that in such high winds, he couldn’t trust the bonnet latch on his Austin Cambridge. Neville Quirke subsequently ran an XA Ford Falcon and, in the mid 80s, the first Nissan Bluebird Widetrack to reach the Capital. More recently, Warren’s daughter Megan had a one year stint driving taxis while she was studying.
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Taking on the presidential role at last years’ conference in Whanganui, Warren sees two main challenges for the Federation in the coming twelve months. One is to increase the percentage of operators who are members : ‘unless we speak with a united network voice, our messages to both Government and the public aren’t as strong’ he says. ‘We’re well on the way to the consistently high standards we know we need to have, but a more solid membership will increase our credibility and make us even stronger’. The second objective is for the taxi industry to become fully recognised as part of the New Zealand public transport solution. ‘The authorities need to realise the important role we have in not only transporting business people efficiently, but also our on-going, often unseen support to the elderly and special needs people in the communities we serve.’ ‘I want to impress upon members the importance of consistent professionalism with which Taxi Federation members are known for : friendly, reliable and clean car, clean driver,’ says Warren. ‘Because now we need to embrace the second revolution in technology’. Warren refers to the change from voice channel data as the ‘first revolution’.’ Virtually everyone was in on the conversation and there was a certain personal touch to what we did’. ‘Now we are embracing the second revolution which is the technology shift towards ordering taxis by phone apps so as a professional industry group, our challenge is to make sure our clients enjoy the full benefit of this new technology – and then to maintain the positive in-car experience when they join us in the vehicle’.
m a 7 t a t h g u a c t e g t ’ n Do ! e r o f e b t h g i n e h t from
MAGAZINE II 2015
Lower alcohol limit for drivers 20 and over for drivers 20 and over December 1 December 1
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NZTFNZTF II NEW II NEW ZEALAND ZEALAND TAXITAXI FEDERATION FEDERATION
BLUE STAR TAXIS (CHRISTCHURCH) REOPENS OFFICE O
n Saturday, 29th November 2014, Blue Star Taxis owners and staff celebrated the society’s 85-year anniversary with MP Nicky Wagner opening the new buildings at 160 Ferry Road. General Manager, Bob Wilkinson has overseen many changes during his six years in the role and says being able to occupy the new building is a relief for many members of the company.
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“Before the earthquakes we had our offices above the Shell service station. When we lost that building we moved into the workshop and the social club. We were lucky to have those spaces although it wasn’t much fun turning a workshop and social club into functioning offices but then it’s just what everybody did. We were really fortunate to own
MAGAZINE II 2015
our own property but we lost income when the service station ceased operating.” Wilkinson says. Working with Apollo Projects the society built four new units. The company now has its call centre and administration offices operating from one and the other three are leased helping to replace the lost income stream. Blue Star Taxis drivers span the generations from their 87-year old veteran, Bill “Grandad” Teague, to their newest 21-year old recruit, Valentine Nenkov. Asked about the diversity within the fleet Wilkinson responded “It all comes down to looking after the customers and you’ve got to like what you do to be able to do that. I think the true spirit of the company and our members came out in the earthquakes and I can talk about our drivers and the good things they did all day, but then they are always doing good things. They’re pretty much a fantastic group.”
MP Nicky Wagner and general manager Bob Wikinson opening the new Blue Stars Taxis Society buildings in Ferry Road.
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Q&A Q: I recently applied to have my P-endorsement renewed but was warned I had accrued many speeding tickets. Why do tickets I have paid on behalf of my family affect my P-endorsement? A: You may have a number of cars in your family that you have licensed in your name not just your taxi vehicle. The authorities have no way of knowing who was driving the car at the time of the infraction unless the driver was stopped by a Policeman. The only information they have is the licensed owner of the vehicle. If you are the licensed owner of the vehicle but were not driving and you pay the fine it will be assumed that YOU were driving. Not only will the NZTA see a list of speeding tickets against your name but also, any possible demerit points will count against you. A statutory declaration form is sent out with speeding tickets (infringement notices) to advise driver details. It must be signed and witnessed before the responsibility of the notice can be transferred onto anyone else. We would strongly suggest that you do this when paying the fine and explain to the family member what their actions could potentially mean for your employment prospects. Q: There seems to be a lot of Policing of mobility vans at the moment – why?
A: Within the last 6-months there has been a sudden increase in people being injured whilst in transit. Many of these injuries have been caused by the wheelchair occupant not being strapped in correctly and subsequently tipping when going around a corner. Whilst the number of reported injuries is still low compared with people transported, there is concern that the number of unreported incidents is also on the rise. As a result there is a crackdown on mobility vans to ensure that standards are being maintained. Q: My accountant is saying that my driver could be classified as an employee even though we have “sub-contract” relationship A: The wording around the tax issue for owner/driver relationships is not clear (and we are in the process of trying to get clarity). Guidance from the Inland Revenue IR272 document on “Taxes and the Taxi Industry” states: “If the driver takes the risk of a loss, pays the running costs, pays the fixed costs (such as insurance) and controls the use of the taxi, then the driver is most likely self-employed. If the owner takes responsibility for most or all of these things, the driver is most likely an employee.” This situation is muddied further if the driver is not GST registered. For the moment, we suggest that you ensure the driver is registered for GST and the driver has some responsibility for the costs (and can claim back the GST). If not, you may find that the IRD are looking at you for some unpaid taxes.
SAVE THE DATE
2015 ANNUAL TAXI FEDERATION CONFERENCE AND AGM CHRISTCHURCH / MONDAY 28TH - WEDNESAY 30TH SEPTEMBER 18
CAMRY R Z
LEASE OFFE R
TOU UG GH HD DEEAALLS, ,NNO OJJO OK KE.
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